Private and Pareto Efficient Public Transfers
AbstractPrivate transfers are a market mechanism that changes the inequality in the distribution of income. Should the government increase or reduce the size of Pareto efficient public transfers after observing an increase in inter vivos private transfers that reduces (increases) inequality in the distribution of income? In this paper we provide an answer to this question. Our analysis identifies conditions in which private transfers change income inequality and crowd out government’s transfers in a targeted redistributive program, but increase the size of public transfers in a broad base redistributive program.
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Bibliographic InfoArticle provided by in its journal Economia Mexicana NUEVA EPOCA.
Volume (Year): XX (2011)
Issue (Month): 2 (July-December)
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Find related papers by JEL classification:
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
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